ComCom raises transparency bar for New Zealand airports

ComCom raises transparency bar for New Zealand
airports

By Jason Krupp

Dec. 23 (BusinessDesk) -
The Commerce Commission today published its information
disclosure requirements for airports, a move aimed at
boosting operating transparency and competition among the
Auckland, Wellington, and Christchurch gateways.

The three
airports, all regulated under the Commerce Act 1986, will be
required to provide regular updates on historical financial
information, quality measures, pricing information, and
revenue forecasts from the start of the 2012 financial year,
according to a statement from the commission.

The move is
seen as a step to incentivise operators to investment in
infrastructure, improve operational efficiencies, share the
benefits of efficiency gains in the supply of regulated
goods with customers, and limit their ability to extract
excessive profits.

"The new disclosure regime represents a
significant step forward in terms of the amount and quality
of information that will be publicly available,” said
commission chair Mark Berry.

“More information will be
available about what customers pay, their experience of
regulated terminal services facilities, and the extent to
which interruptions are related to the supply of regulated
airport services.”

The Commission said the new
disclosure requirements have been established in line with
generally accepted accounting practices, and input
methodologies for regulated airport services, making
comparison between operators easier.

The full list of
disclosures include reports on return on investment;
regulatory profit; regulatory tax allowance; regulatory
asset base roll-forward; related party transactions; actual
to forecast expenditure; segmented information; and a
consolidation
statement.

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